This post is part 8 of our 10 part series on Financial Behavioral Insights from our Financial Planning Performance in the New Behavioral Economy White Paper. The financial behavior insights will help you gain greater self-awareness for recognizing some of your own behavioral tendencies and also those of investors.
Behavioral Insight 8: Pioneering Goal Driver
Anna Summer is a 45-year-old executive who leads the sales team for a large international foods company. To Anna, being wealthy and seen as professionally and financially successful is important. In the early meetings with the financial advisor, Anna communicated her goals and asked that the advisor keep her on track to meet them. Coming with her driving approach are significant financial goals and a lifestyle that has to be maintained. Anna did say that now that she has found her passions in business and life, her competitive drive has become relentless.
Naturally ambitious and driven people will be Pioneering Goal Drivers who are focused on growing their wealth but may be overly focused on success.
Communication key: Address their goals and remember their need for quick action.
Anna is the typical Pioneering Goal Driver who has big goals that need to be achieved in a hurry. She is naturally ambitious and determined to reach higher levels of success. So long as a Pioneering Goal Driver can see the goal is viable and there are signs of success, they will keep on going and may even increase their intensity toward the goal. From an investment perspective they can set long-term goals, and they will keep with the strategy so long as progress is being made. They usually will not make emotional decisions that ruin any progress that has been made.
The struggle for a Pioneering Goal Driver is that they are not going to be a content person satisfied to take the more lifestyle balanced life option. They will always be striving to make their life better. Therefore, they could sacrifice too much for success.
The reality is that most people have goals of some sort that they want to pursue. The question becomes, Can a person who expresses a desire to achieve big goals do what is needed over the long term to achieve those goals when the going gets tough? Not all people can, although they may think they can. Will they be persistent enough to follow through and make the necessary life change and accept the bumps on the road? Again, this can be difficult as there will always be many factors competing for attention and self-doubt that can creep in.
Advisors who are Pioneering Goal Drivers will naturally be focused on helping their clients set and achieve goals. However, they will need to realize that not all clients will be goal focused in the same way. Some clients will be very driven and results focused and others only want enough for their lifestyle needs.
Learning Point: The Pioneering Goal Driver needs to be questioned by the advisor in depth on the realism of their goals and deep-down desire to diligently achieve them. Then they need to be guided to set a concrete plan of action. Ask the client: Tell me about how you are progressing towards achieving your goals? How important for you is it to be seen as financially successful?
What are your thoughts? For additional information on discovery through behavioral profiles, click here.